Kohl's Shares Surge to Ten-Month High in 'Meme Stock' Rally.

Kohl's shares surged to a 10-month high after a "meme-stock" rally, driven by online discussions on Reddit's WallStreetBets. The stock price doubled to $21.23, with a volume of 190 million shares, compared to an average of 8.7 million shares per day. Analyst David Swartz attributes the surge to a steadily increasing stock price and bets against the stock likely resulting in losses for those who shorted it. However, Swartz expects the trading frenzy to be short-lived.

Kohl's Corp shares briefly doubled in value to a ten-month high of $21.23 on July 22, making it one of the most traded stocks on retail platforms. The chain became the latest “meme stock,” as the surge in trading was driven by online discussions on platforms like Reddit’s WallStreetBets [1]. The volume of the Wisconsin-based company’s stock caused a temporary halt in trading. The share price closed at approximately $14.34 per share, representing a 38% increase for the day.

The recent trading frenzy resembles the 2021 "meme stock" rally, marked by surges in stocks like GameStop and AMC Entertainment. Contributing factors included COVID-19 lockdowns, which increased savings, government stimulus checks, and low interest rates that drove more investors into the stock market [2].

Analyst David Swartz, with Morningstar who monitors Kohl’s, told the Milwaukee Journal Sentinel that the stock price has been steadily increasing in recent months. “It’s been building for a while,” Swartz said. “It has been building from its lows, and people started promoting it online.” The volume on July 22 was astronomically higher than usual, with as many as 190 million shares traded compared to an average of 8.7 million shares per day [1].

Those who bet against the stock likely lost money or had to buy more stock to cover their losses, according to Swartz. Even with the stock’s performance increasing in recent weeks, Swartz said he doesn’t expect the trading frenzy to last. Macy’s and Bed, Bath & Beyond are examples of companies that have been caught up in the “meme stock” rally, but neither company’s future financial situation has changed [1].

The surge in Kohl’s shares highlights the growing influence of retail investors in shaping stock prices, even for well-established companies. Unlike traditional value-driven investing, meme stock movements are often ephemeral, driven by social media trends rather than corporate performance. Kohl’s stock, for instance, closed at a 37% gain on July 6 but had already lost nearly half its post-rally value by late July [3].

The event also reflects the cyclical nature of meme stock activity. Following the GameStop frenzy in early 2021, similar patterns have emerged in other undervalued stocks, with Kohl’s joining the ranks of companies like Bed Bath & Beyond and Krispy Kreme as beneficiaries of viral trading [3].

References:
[1] https://www.usatoday.com/story/money/2025/07/24/kohls-shares-meme-stock-rally/85356857007/
[2] https://www.ainvest.com/news/kohl-shares-surge-105-meme-stock-rally-settle-39-higher-retail-trader-driven-volatility-2507/
[3] https://www.tradealgo.com/news/a-five-cent-meme-stock-just-made-up-15-of-u-s-trading-volume